Bengaluru: Union Minister Nirmala Sitharaman on Sunday mentioned the Central authorities is working with the Ministry of Electronics and Information Technology (MeitY) and Reserve Bank of India (RBI) to clamp down on ponzi apps like by no means earlier than to stop them from taking away hard-earned cash of gullible buyers. However, she mentioned there isn’t a proposal at current earlier than it to manage financial influencers on social media.
Asserting that buyers ought to be cautious of influencers, she mentioned if there are three or 4 people giving us very goal good recommendation, there could also be seven others out of 10 who’re in all probability pushed by another issues.
Speaking on the Thinkers Forum at Tumakuru (Karnataka), Sitharaman mentioned, “If there are three-four people giving us objective advice, there are seven others out of ten who are probably driven by some other considerations. There are also apps which are coming out and reaching out to people saying we can do this, we can do that. Your money will fetch you this much. Many of them are ponzi, the apps on which we are working with the Ministry concerned, the Ministry of Electronics & Information Technology (MeitY) and with the Reserve Bank and clamping down on them like never before, so that we don’t get those ponzi apps, taking away hard-earned money.”
Sitharaman had a phrase of warning for people
Cautioning buyers against ponzi apps, Sitharaman mentioned buyers ought to do their due diligence and shouldn’t be lured by claims of profitable returns made by them. “Social influencers and financial influencers are all out there but a strong sense of caution is required in each one of us to make sure we do double checking, counter checking, don’t go as a flock into something and therefore protect hard-earned money,” she mentioned.
‘No proposal to manage financial influencers on social media’
Asked about regulating social influencers and financial influencers, she mentioned, “I’m not having any proposal before me for regulating them at this stage.”
In 2019, the federal government enacted a regulation known as the Banning of Unregulated Deposit Schemes Act, 2019, which seems to be to stop unregulated entities from amassing deposits and duping the poor and gullible of their hard-earned financial savings. As per the Act, any deposit taker who solicits a deposit in contravention of Section 3, shall be punishable with imprisonment of not lower than one 12 months and as much as 5 years.
As per the regulation, the primary declare on the recovered cash shall be of depositors and the proposed laws additionally has some exclusion together with cash collected by actual property companies and from pals and relations. It seeks to assist sort out the menace of illicit deposit-taking actions within the nation, which at current are exploiting regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard-earned cash, in line with the federal government.
(With PTI inputs)
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